UnPaid (and not your) Pal

Posted Fri February 3, 2012 12:00 pm, by Ruth H. written to PayPal.com

I recently sold a pair of jeans for charity. The entire sale, 100%, went to the charity. Paypal has placed a hold on the funds and will not release them until the buyer leaves feedback or 21 days, whichever comes first. I strongly suggest you begin releasing funds immediately for charity auctions when all of the funds are for charity and none are for the seller.

The 21 day float (when Ebay/Paypal makes money off of the seller or charity's money) is not acceptable, and one reason I almost never sell anything on Ebay on my personal account. [Planetfeedback note: there are two accounts; the other doesn't have the hold problem, but this was personal and not business-related.] If it weren't a fundraiser I wouldn't have this time either; your policies are frankly as seller-unfriendly as possible. It is not fair to either seller or charity to hold the funds.

Again, I strongly suggest you revisit this policy. It would go a small way toward rehabilitating your image. Sellers are already staying away in droves, and this business of holding charitable contributions can't be helping.

They know that the same way they know what the shipping options arethat you have enabled and your payment options. You've obviouslynever listed anything. The charity auctions, unless listed by a501C3, all have to go through Giving Works/MissionFish.

As for money, Ebay/Paypal holds the money and makes interest on themoney while they hold it. Since they're holding a bucket of it theinterest return can be substantial. Companies like banks have beendoing it for decades. It's also possible that if the buyer claims tobe dissatisfied, they get to keep the item and Ebay refunds theirmoney. They then take it back from the seller, or never give it tothem in this case. If that happens the seller's fees may or may notbe refunded as well. Often they aren't. It may "only" be about 50cents, but by golly it's the seller's 50 cents and not Ebay's.

It's all pennies per seller, but those pennies add up. Money grubbingat its finest.